In Ukraine, police arrested a criminal group that allegedly extorted $250,000 in stablecoin Tether (USDT) from a young entrepreneur. The group posed as law enforcement officials and threatened the victim with criminal charges for a fabricated crime.

Cyber police and the Department of Internal Security of the National Police detained the four suspects. According to a statement, they face up to 12 years in prison. The crackdown comes after a report in May, where the 20-year-old online business founder informed the police about unknown individuals impersonating law enforcement officers.

The Plot

It's alleged that the group intimidated the entrepreneur by accusing him of collaborating with Russia. They threatened him with a lengthy prison sentence for treason. To 'settle the issue,' they demanded $250,000 in crypto.

Fearing legal repercussions, the entrepreneur complied and transferred 250,000 USD to a group-controlled crypto wallet. The criminals then quickly moved the stolen funds through a crypto exchange.

Cyber police officers tracked the movement of the crypto assets, identifying the suspects who had no ties to law enforcement. With the assistance of the Kyiv City Prosecutor's Office, investigators from the State Police in Kyiv conducted a coordinated operation to apprehend them.

The Arrest

Searches were carried out across Kyiv, Kyiv region, and Cherkasy region, targeting the homes and vehicles of the suspects and their family members.

Authorities seized bank cards, computer equipment, mobile phones, luxury cars, fake journalist IDs, ammunition, and cash. This detailed operation highlights the complexity and scale of the crime.

A Growing Trend

Ukraine police face frequent cases of high-profile crypto crime. In July, Decrypt reported that four men were arrested for kidnap and murder in a case that involved the theft of $170,000 in Bitcoin.

A July report from Europol highlighted a Ukrainian cryptojacking scheme that covertly mined over $1.95 million in various crypto.

Ukraine also deals with more traditional crypto scams. In June, authorities detained 14 people working as an organization to run a conventional call center scam operation.

In 2023, the European Union trained Ukrainian officials from several law enforcement departments to help trace crypto and better investigate criminal cases involving the asset class.

"Authorities seized bank cards, computer equipment, mobile phones, luxury cars, fake journalist IDs, ammunition, and cash."

The crackdown on this particular criminal group is a significant win for law enforcement. However, it also underscores their ongoing challenges in combating crypto-related crimes.